 "US FTC dismisses Amazon trial delay, insists DOGE cuts won't derail case")
The US Federal Trade Commission (FTC) said on Wednesday that it does not require a delay in the September trial against Amazon, reversing an earlier claim that resource constraints due to budget cuts necessitated an extension, news agency Reuters reported.
FTC attorney Jonathan Cohen retracted his previous statement in a message to US District Judge John Chun in Seattle.
FTC confirms full commitment to litigation
"The Commission does not have resource constraints and we are fully prepared to litigate this case. Please be assured that the FTC will meet whatever schedule and deadlines the court sets," Cohen was quoted as saying by Reuters.
FTC Chairman Andrew Ferguson reinforced the agency’s dedication to the case, emphasising its commitment to consumer protection. He further said that FTC will allocate the necessary resources to this case, and the Trump-Vance FTC will not back down from holding Big Tech accountable.
Earlier claims of resource constraints
Earlier on Wednesday, Cohen had described a “critical resource challenge” resulting from cost-cutting measures implemented under President Donald Trump. He cited workforce reductions across the agency, including in the division handling the Amazon case.
“We have lost employees in the agency, in our division, and on our case team,” Cohen stated during a morning hearing.
Multiple federal agencies — including the Environmental Protection Agency, Department of Education, and the United States Agency for International Development — have experienced significant budget reductions under directives championed by Trump advisor and Tesla CEO Elon Musk. However, the FTC has not faced widespread layoffs.
Despite this, Cohen said that some employees working on the Amazon case had accepted resignation offers in January, while others had departed for various reasons or were scheduled for leave during the trial. Additionally, a hiring freeze remained in place.
Executive order limits government hiring
In February, Trump signed an executive order restricting federal agencies to hiring just one new employee for every four who leave.
The FTC filed a lawsuit against Amazon in 2023, alleging the company used “deceptive user-interface designs,” also known as “dark patterns”, to mislead consumers into subscribing to automatically renewing Prime memberships.
Case involves significant financial claims
Cohen stated that the case, which centres on what he described as the world’s largest subscription programme, involves claims exceeding $1 billion. Amazon, which reports more than 200 million Prime subscribers globally, has denied any wrongdoing. The lawsuit also includes three senior Amazon executives as defendants.
Logistical challenges raised by FTC attorney
Cohen cited new policies restricting FTC attorneys from expediting the purchase of legal proceeding transcripts, potentially delaying access to crucial documents by weeks. He also pointed out that the Trump administration’s decision not to renew the FTC’s office lease could require staff to relocate during trial preparations. Additionally, travel budgets for FTC staff have been reduced.
Judge Chun questioned the impact of these issues on the trial timeline. “If you are facing resource shortages now, how will the situation change in two months?” Chun asked.
“I cannot guarantee that conditions won’t deteriorate further,” Cohen responded, though he maintained that a delay would alleviate some pressure on the legal team.
Amazon opposes postponement
Amazon’s attorney, John Hueston, argued against rescheduling the trial, asserting that legal teams frequently change during cases. Referring to Musk’s Department of Government Efficiency (DOGE), he remarked that trial attorneys come and go in every case, "DOGE or no DOGE".
(With Reuters inputs)